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Minnesota State Legislature - What"s New

The Chronicle (February 2009): An internal newsletter for the Office of the Chancellor

Tuesday, May 19, 2009

The 2009 legislative session came to an end at midnight last night with no global agreement. Legislative leaders and the governor were not able to resolve their differences, so the governor has said he will unallot the gap remaining after the line-item vetoes in the spending bills. It is anticipated that the Minnesota State Colleges and Universities system will receive an unallotment of approximately $70 million in 2011, the second year of the biennium. An unallotment is considered one-time.

With minutes to spare, the House and Senate did pass a $2.7 billion tax bill that would resolve the state's deficit through a $1 billion tax increase and a one-time shift. The bill passed the House 82-47, and minutes later, the Senate approved the bill by a vote of 35-1. The bill will certainly be vetoed by the governor.

Also in the final hours last night, HF 2251 was passed that revises the tuition cap language for the system given the anticipated cut to the system in 2011. Instead of capping tuition at 5 percent each year and using federal stimulus funds to buy it down to 3 percent each year, the language now reads that tuition is capped at 5 percent each year, but federal stimulus funds are to only be used to buy tuition down to 3 percent in FY 2010. Legislation no longer requires a federal stimulus buy-down in FY 2011.

A pension conference committee met yesterday to work through the differences between the House and Senate. The pension bill originally contained an article that would have increased teachers’ pension contributions to address deficiencies in several teachers’ pension funds. The article was removed over concerns that Gov. Tim Pawlenty opposed it and might veto the bill if it were included. The conference committee report did pass last night by the House and Senate and is headed to the governor. The bill includes a provision that permits the Minnesota State Colleges and Universities system to establish an early separation incentive program for its employees.

DFL legislative leaders will be traveling throughout the state today to discuss the 2009 legislative session. Stops will include St. Paul, Duluth, Bemidji, Moorhead, St. Cloud, Mankato, and Rochester.

Lawmakers will return to St. Paul for the 2010 legislative session at noon February 4, 2010.

Please watch for the 2009 Mandates and Curiosities report that summarizes all legislation related to higher education that passed this session. The report will be available here at the end of June.

Monday, May 18, 2009

Today is the final day of the 2009 legislative session. Lawmakers have until midnight tonight to wrap things up. The tax conference committee will be meeting this morning at 9:00 in room 15 of the Capitol. The Senate also goes into session at 9:00 a.m. and the House goes in at 9:30 a.m.

On the House floor last night, members tried to override the governor's veto of the tax bill. 90 votes are needed for an override. Senator Majority Leader Tony Sertich, DFL-Chisholm, said on the floor that the least lawmakers could do is have a balance of compromise. The effort to override the governor’s veto was defeated 85-49.

The tax bill, HF 885, was vetoed by the governor May 8. The bill was an attempt by legislators to reduce cuts to K-12 schools, hospitals and nursing homes by creating a new 4th tier tax bracket for the state’s top earners, increasing alcohol taxes and adding a surtax on income made by credit card companies charging excessive interest rates.

The governor and the Legislature have been at odds as to how to resolve the budget deficit. The governor’s position has been no new taxes, but to rely on cuts, shifts and use of appropriation bonds. The Legislature has said that appropriation bonds would be “borrowing against the future.”

Offers and counteroffers have gone back and forth over the weekend and the governor has signed the major finance bills, although some received line-item vetoes, including the higher education bill and bonding bill. The governor has said he is prepared to unallot spending proposals if no compromise is reached.

The governor took action on the bonding bill. HEAPR projects were funded at $40 million, however all the other projects were line-item vetoed. You can see the letter from the governor at the link here.

The governor signed the higher education omnibus appropriation bill, however he did line-item veto three areas in the bill, the funding for the TEACH program, the funding for the Power of You program, which was $500,000 for the current program and the $500,000 one-time funds for the pilot expansion. He also line-item vetoed the $40,000 for the Cook County program. You can find the details here.

With the attempt to override the governor's veto of the tax bill defeated, and legislators and the governor still not having reached a global agreement, further cuts to higher education by the governor could be a possibility.

The governor did sign the K-12 Education bill and the State Government bill without any line-item vetoes. He also signed the contract ratification bill that includes the IFO contract for 2010-11.

We will continue to keep you posted throughout the day.

At the Capitol:Legislative schedules are available for the House and Senate.

Friday, May 15, 2009

Yesterday at the CapitolGov. Tim Pawlenty said yesterday that he will use line-item vetoes and his authority to unallot to balance the state budget deficit. He said there will not be a special session or government shutdown. The Legislature has passed budget bills that leave a $3 billion shortfall between spending and revenues. The tax bill passed by the Legislature attempts to resolve that shortfall, but the governor has said he will not sign a bill with any tax increases.

Gov. Pawlenty said his intent is to sign all the omnibus finance bills sent to him, however, he has said some will be line-item vetoed. Without providing any specifics, Pawlenty said the end result will resemble his budget proposal in January.

Pawlenty did say he would rather work out a compromise with legislative leaders. "There's still a good chunk of time between now and midnight Monday. … I prefer to reach an agreed upon solution."

Speaker Margaret Anderson Kelliher, DFL-Minneapolis, responded to the governor's plan by saying Minnesotans expect to know where the governor is planning to cut. DFL leaders invited the governor to attend the Legislative Commission on Planning and Fiscal Policy to discuss his plans in public. Majority Leader Tony Sertich, DFL-Chisholm, said lawmakers would like to see the details behind his plan.

Senate Majority Leader Larry Pogemiller, DFL-Minneapolis, said he thinks it's important to find a calm and reasonable solution to find an end to the session, and said this is a time to be states people and not make rash decisions. Pogemiller said the governor is showing a willingness to compromise by signing the budget bills.

We shall see what progresses today and over the weekend.At the Capitol:Legislative schedules are available for the House and Senate.

Thursday, May 14, 2009

Yesterday at the CapitolIt was a busy day as both the House and Senate processed multiple conference committee reports and bills and sent them on their way to the governor.

Higher Education bill approved - heads to governorThe House and Senate approved the higher education conference committee report yesterday. After Senate author Sandy Pappas, DFL-St. Paul, explained the bill, the full Senate approved it by a vote of 54-12 with no discussion. The House then took up the bill later in the day and approved it 103-31. The bill now heads to the governor.

House and Senate pass bonding billThe House approved the bonding bill on the floor by a vote of 109-25. Author Rep. Alice Hausman, DFL-St. Paul, said while explaining the higher education projects in the bill that higher education is the engine that drives the economy. The Senate then took up the bill and passed it by a vote of 59-8. As a reminder, included in the bill is $40 million in HEAPR for the Minnesota State Colleges and Universities and all five of the 2008 vetoed projects. Please refer to yesterday's daily update for further details in the bill.

Agriculture and veterans affairs bill passes with overwhelming supportThe House approved the agriculture and veterans affairs conference committee report 133-0 and then the Senate approved it 62-0. The bill includes $100,000 each year for mental health counseling support to farm families and business operators through farm business management programs at Central Lakes College and Ridgewater College. Language is also included in the bill that establishes a Feeding Minnesota Task Force to study the consumption of Minnesota grown produce and livestock by facilitating the donation of harvested products to charities that pprovide food for hungry people. Included on the task force is a representative from a higher education institution.

Also included in the bill is the Green Jobs Food Production Study provision that requires the Agricultural Utilization Research Institute to prepare a detailed study of the state's food production sector in coordination with the Minnesota State Colleges and Universities; urban, rural, and tribal community-based agriculture and food security organizations; members of the Legislature with service on committees created by the Green Jobs Task Force; and other interested stakeholders. The study is to define the size of the employment base and identify opportunities to increase the number of green jobs in each of the following sector segments: organics and organic value-added processing and local, conventional, natural, traditional, and urban farming.

In the Veterans section of the bill, $100,000 each year is included for the costs of administering the Minnesota GI Bill program.

E-12 Education bill approved Both bodies also approved the E-12 education conference committee report yesterday. The House approved the bill by a vote of 85-49 and the Senate approved the bill 49-16. The bill will keep K-12 school spending flat over the next two years, compared to the Senate position that would have cut school spending more than 3 percent. The bill also removed the $1.8 billion funding shift that was a major part of the House's budget solution. The bill now heads to the governor.

Contract ratification bill passesBoth the Senate and House have passed the contract ratification bill and it now heads to the governor. Included in the bill is the 2010-11 Inter Faculty Organization contract. Also included is the 2008-09 MSUAASF contract that was not ratified last session due to timing. The 2010-11 MSUAASF and MSCF contracts and other contract and plans, will be heard by the Legislative Coordinating Commission Subcommittee on Employee Relations during the interim and ratified by the Legislature next session.

Countdown to May 18 - will a "lights-on" bill be necessary?After the Senate passed a "lights-on" bill Tuesday by a vote of 45-19, the House took it up on the floor yesterday and passed it 88-46. The bill would keep government going if no other appropriation bills for the 2010-11 biennium are enacted. House Majority Leader Tony Sertich, DFL-Chisholm, called the proposal a last resort. "By adopting this bill, we can keep core services going, and money that needs to be accounted for," Sertich said.

If an agreement on how to resolve the $6.4 billion budget deficit is not reached by May 18, the bill would cap state agency spending during fiscal year 2010 at the current spending levels if the governor signs the bill. Gov. Pawlenty said he would consider signing a "responsible lights-on" bill, but he said the bill passed by the Legislature spends too much and could deepen the state's deficit.

The spending bills are in the hands of the governor now. On the House floor today, Republicans asked Gov. Pawlenty not to sign any more spending bills until decisions are made about where the money is coming from. There is a $3 billion difference between legislative leaders and the governor. Stay tuned.At the Capitol:Legislative schedules are available for the House and Senate.

Wednesday, May 13, 2009

Agreement on bonding billThe capital investment conference committee approved the bonding report just before midnight last night. The total bill authorization is $343.5 million, of which the general obligation bond proceeds is $279.8 million. Included in the bill is $40 million in HEAPR for the Minnesota State Colleges and Universities. All five of the 2008 vetoed projects are also in the final bill:

Lake Superior College Health Science Center - $11 million

Mesabi Range Community College, Eveleth addition - $5.25 million

Metropolitan State University Classroom Center - $5.7 million

North Hennepin Center for Business - $13.3 million

System wide classroom renovations - $3.625 million (Can use non-state money to increase the size of the individual projects excluding tuition and fees)

Other related projects in the bill include:

Minnesota State College - Southeast Technical - authority to retain proceeds from sale of surplus property

City of Mankato - $6.5 million grant for women's hockey Expo Center for use by Minnesota State University Mankato. The Board may lease land on campus to the city.

Olmsted County steam line - $5 million grant to construct steam pipeline to Rochester Community and Technical College campus

Metropolitan State University Law enforcement Center - excluding revenue from student tuition and fees, may use up to $2 million of college/university funds for the remainder of the project.

Owatonna - may use remaining funds from property acquisition for capital improvements to the property

St. Cloud State University - may use funds available from Brown Hall renovation to complete design

Pension bill heads to floorThe omnibus pension bill passed out of the House Ways and Means Committee yesterday with no amendments. The next stop for the bill is the House floor. As a reminder, the bill includes a provision that permits the Minnesota State Colleges and Universities system to establish an early separation incentive program for its employees.

Link to higher education billThe outcome of the higher education conference committee was reported last night. The bill is now available online here. If you have any questions, please don't hesitate to contact any of the government relations team.

Tuesday, May 12, 2009

The higher education conference committee ended up not meeting yesterday. At approximately 12:45 this morning, conferees indicated they would continue working toward an agreement and come back for a meeting at 8:30 this morning. Legislative leaders had hoped to have all major spending bills wrapped up by the end of today. Stay tuned.

The capital investment conference committee scheduled to meet yesterday afternoon was canceled. Watch for notice of a future meeting date.

The House State Government Finance Committee and then the full Finance committee approved the omnibus pension bill yesterday. Sponsored by Rep. Mary Murphy, DFL-Hermantown, HF 723 comprises the work of the Legislative Commission on Pensions and Retirement. It includes language from more than two-dozen individual bills dealing with pension issues.

Included in the bill is the provision that permits the Minnesota State Colleges and Universities system to establish an early separation incentive program for its employees. The companion bill in the Senate, SF 191, awaits action by the Senate E-12 Education Budget and Policy Division.

At the Capitol:Legislative schedules are available for the House and Senate.

Monday, May 11, 2009

We are headed into the final week of the regular session, with only eight days before adjournment. After the House and Senate approved the tax conference committee report Friday night, Gov. Pawlenty made good on his promise to veto the bill, which he did immediately in the early hours Saturday morning.

If you've got your scorecard out, not a lot of the major spending bills have the governor's signature on them. To date, the governor has signed the transportation finance bill and the environment and natural resources bill, with one line-item veto. He has vetoed the economic development bill and tax bill. There is still plenty of time to wrap it up by May 18, but it will take a lot of compromise. No matter how you frame the budget deficit, $6.4 billion or $4.6 billion with the federal stimulus funds included, lawmakers have their work cut out for them.

The higher education conference committee is expected to meet today at the call of the chair. The Senate holds the gavel. The House goes into session at 11:00 a.m. and the Senate goes in at noon.

At the Capitol:Legislative schedules are available for the House and Senate.

Friday, May 8, 2009

Yesterday at the CapitolThe higher education conference committee met yesterday and made progress on many provisions in the bill. Conferees adopted the language that requires the Pell grant surplus to stay in the state grant program. Conferees also deleted the language that states the Minnesota State Colleges and Universities cannot fill administrative or managerial positions or use search firms for hiring.

The provision on American made clothing in bookstores was amended to delete the word "only." The language now reads, "To the extent possible, a bookstore located on the campus of a public college or university in Minnesota must offer for sale clothing or articles of apparel that are manufactured in the United States of America. The college or university must make a report to the legislature on the results of efforts to comply with this section."

The provision on labor market data review for the Minnesota State Colleges and Universities was amended to now read, "The board must assess labor market data when conducting college program reviews. Colleges must provide prospective students with the job placement rate for graduates of technical and occupational programs offered at the colleges."

Conferees deleted the tuition guarantee provision that requires the system to offer students a four-year stable tuition rate, and the language that was in the House bill for the sale of the Minnesota State College - Southeast Technical aviation training center was adopted.

Conferees still do not have targets so any provision or language dealing with money has not been acted on. Yesterday evening conferees did discuss some of the finance provisions and ended with a discussion on the oral health practitioner language. The conference committee is expected to meet today after the last body adjourns. The House goes into session this morning at 9:30 and the Senate goes in at noon.

Yesterday was the final deadline for conference committee reports to be finished. Yesterday on the floor the House and Senate voted to amend their Joint Rules regarding committee deadlines. Majority Leader Tony Sertich, DFL-Chisholm, said, "We could debate deadlines but it doesn’t bring us closer to reaching agreement." Sertich referenced Minnesota Management and Budget Commissioner Tom Hanson who stated in a recent Legislative Commission on Planning and Fiscal Policy hearing that he would rather see them all take a little more time, and not ram through bills just to meet a deadline.

At the Capitol:Legislative schedules are available for the House and Senate.

Thursday, May 7, 2009

Yesterday at the CapitolThe capital investment conference committee met yesterday and discussed a number of topics, including flood mitigation, commuter and passenger rail projects and transit projects. The House made two offers, both of which included the five vetoed projects from 2008 and $40 million in HEAPR for the Minnesota State Colleges and Universities. The Senate now has the gavel and another conference committee meeting is anticipated today.

The higher education conference committee also met yesterday and the Senate presented a proposal. No action was taken and conferees did not meet the rest of the day. The House has the gavel today and has scheduled a conference committee for 8:30 a.m.

Over in the E-12 education conference committee, conferees continue to have extended discussions on the policy issues where the two bills are far apart, but without budget targets, finance provisions have not been discussed in any depth. Co-chair Mindy Greiling, DFL-Roseville, said there is not yet a target, nor does she expect one by the Thursday conference committee deadline, because "the House has not agreed with the Senate to split the difference" between the two bills. That difference is about $500 million for the biennium.

Today is the fifth and final committee deadline when conference committees are supposed to have conference committee reports to the floor. Capitol watchers wonder if that goal will be met.

While conference committees are meeting, the Legislative Commission on Planning and Fiscal Policy meets daily as legislative leaders and the governor's office work toward reaching agreement on the $6.4 billion budget deficit.

The Commission has become the forum for transparency regarding end-of-session negotiations.

Speaker Margaret Anderson Kelliher, DFL-Minneapolis, said that federal stabilization money is complicating the mix in setting spending targets, especially in the areas of health and human services, K-12 education and higher education.

Kelliher said there is still time to get the work done, but cited urgency. "We want to have time so people know the bills, read the House Research summary, do this as publicly as possible and give people as much time as possible," she said.

At the Capitol:Legislative schedules are available for the House and Senate.

Wednesday, May 6, 2009

Yesterday at the CapitolThe bonding conference committee met yesterday afternoon, and the Senate had the gavel. The Senate made an offer and lowered their overall bill proposal to $279.5 million, down from $300 million. This compares with the House offer on April 23 of $275 million. While the Senate and House are close on the total bill, they still differ on a number of projects throughout the state.

For the Minnesota State Colleges and Universities, both the House and Senate are now at $40 million for HEAPR, and both bodies have all five vetoed projects. The conference committee is scheduled to meet today at 2:30 (see schedule below).

The higher education conference committee did not meet yesterday as originally planned, however, they are scheduled to meet this morning at 9:00.

The House passed the economic development conference committee report yesterday by a vote of 74-57, and the Senate passed it Monday, 38-28. It now heads to the governor. Included in the bill is $1,000,000 from the 21st Century Minerals Fund for a grant to the Northeast Higher Education District for planning, design, and construction of classrooms and housing facilities for upper division students in the engineering program.

Also included is language that directs the Commissioner of the Department of Employment and Economic Development to lead a project to provide advice on state agency collaboration in the design, coordination, and administration of a strategic science and technology program for the state. A representative of the Minnesota State Colleges and Universities is to be a project member.

At the Capitol:Legislative schedules are available for the House and Senate.

Tuesday, May 5, 2009

The higher education conference committee met yesterday and continued discussions on provisions in both bills. Minnesota State Colleges and Universities Vice Chancellor and CIO Ken Niemi spoke on how technology dollars have been spent. He highlighted infrastructure, necessary projects and the need for a secure system. Conferees recessed for floor session and reconvened in the afternoon to hear about the oral health practitioner and dental therapist provisions in the bill, as well as the human cloning provision. The conference committee plans to meet today after floor session, which is likely to be late afternoon/early evening. Co-chair Sen. Sandy Pappas, DFL-St. Paul, indicated they were supposed to receive budget targets last night. If that is the case, they will be able to work through the finance provisions in the bills.

Economic Development Conference Report goes to the floor

The economic development conference committee reached agreement on SF 2081 yesterday. The conference report includes $350.6 million in total spending, representing a cut of more than $15 million from forecasted base funding. The Senate had proposed $356 million and the House $368.4 million. "I think we have a really good compromise here," said committee co-chair Sen. David Tomassoni, DFL-Chisholm. Tomassoni said he did not like some of the budget cuts included in the bill, but said they were made in the interest of reaching a compromise with the governor’s office. The conference report now goes to the House and Senate floors for approval today.

Monday, May 4, 2009

With two weeks to go before regular session adjournment, the Legislature is on track to finish on time, but unless legislative leaders and the governor can agree on how to resolve the $6.4 billion budget deficit, we could be headed into overtime. Thursday is the fifth and final committee deadline, when conference committees are to have their bills to the floor. The Higher Education Conference Committee meets this morning at 9:00 and will continue discussing the policy provisions in the two bills. Schedules will be fluid over the next two weeks.

At the Capitol:Legislative schedules are available for the House and Senate.

Friday, May 1, 2009

The higher education conference committee met again yesterday and discussed multiple provisions in the bill. Proposals were made, but nothing was accepted and no action has been taken other than the same and similar provisions between the two bills that were adopted Wednesday. Conferees are scheduled to meet today at 11:00 in room 118 of the Capitol.

The Legislative Commission on Planning and Fiscal Policy also met yesterday to continue discussions on budget targets. House Speaker Margaret Anderson Kelliher, DFL-Minneapolis, said there needs to be transparency as the House, Senate and the governor work toward a 2010-11 biennial budget agreement. "To the extent possible, we want to do this in a public way, so we understand the choices that need to be made," Kelliher said.

Bill Marx, House chief fiscal analyst, said that the federal stimulus funds are complicating the numbers. Some of the money is used to stabilize accounts, or buyback previous budget reductions, while others parts are to be used as an economic stimulus.

Speaker Anderson Kelliher said the work by conference committees on four omnibus bills: agriculture and veterans affairs, transportation finance, economic development, and environment and natural resources, should be completed this weekend, with the intent of having them on the governor’s desk the middle of next week.

Also meeting yesterday was the Senate Higher Education Policy Committee to approve governor appointments. Committee members recommended that David Paskach be confirmed as a member of the Minnesota State Colleges and Universities Board of Trustees. The recommendation was referred to the full Senate for final confirmation.

At the Capitol:Legislative schedules are available for the House and Senate.